Britain's quarter of a trillion pound exposure to the PIIGS

[Andy2]

from one of the comments

We are completely focused about the insolvent PIGS (Portugal, Ireland, Greece, Spain), but what about that other EU/EC albatross further east known as
B-U-L-L-S-H-I-T:
B- Bulgaria
U- Ukraine
L- Latvia
L- Lithuania
S- Slovenia
H- Hungary
I- Italy
T- Turkey

[AtW]

Sounds just like the problem in 1914. A linked system of alliances, so that if one country felt threatened or aggrieved then it would mobilize, which threatened the next, and so on ...

Yes, let's have no allies or allianances, that would make things better

For speculators it will!

[OwlHoot]

Sounds horribly familiar

From today's Labourgraph:

Will markets call EU bluff on Greek rescue?

... French banks have $76bn of exposure to Greece, the Swiss $64bn, and the Germans $43bn. But this understates cross-border links. There are large loans between vulnerable states. The exposure of Portuguese banks to Spain and Ireland equals 19pc of Portugal's GDP. Interlocking claims within the eurozone zone are complex. Contagion can spread fast.

Marc Touati, of Global Equities in Paris, said the "haemorrhage of Greece" must be stopped to prevent a domino effect. "We have to move fast, above all to keep Greece in the eurozone. If not, Spain, Portugal, and Italy will be next. It could reach France," he said. ...

Sounds just like the problem in 1914. A linked system of alliances, so that if one country felt threatened or aggrieved then it would mobilize, which threatened the next, and so on ...

[Andy2]

its like a financial armageddon out there
Question is who will sink first , Europe or US ?
it seems dirty spekulants are playing the same game with euro they played with asian economies in 90's.

[Tarquin Farquhar]

I think so, I never used to get like that until Tony B Liar started getting lots of media coverage and it's only got worse since El Gordo took over...

Lots of us started getting that feeling in 1979.

[Ardesco]

I'd like to think that in real life I'm fairly laid back and mild-mannered. However, every time I see that utterly f*$cking useless sack of tulip on the TV/hear him on the radio I feel total hatred. Is this normal?

I think so, I never used to get like that until Tony B Liar started getting lots of media coverage and it's only got worse since El Gordo took over...

[DiscoStu]

I hope they don't show that on CNN, I hate seeing people from poor countries being badly treated.

PZZ

[xoggoth]

Completely.

[pzz76077]

Oh joy, the Nu Liemore spin machine has already started pushing out "facts" and "figures" to support El Gordo's up and coming billion euro cash handout to save Euroland and in turn the world.

I can't wait to see the one eyed snot goblin stand up pull down our trousers once more and give us yet another massive rogering before leaving us to drown in his mountains of debt while he flits around the world making millions on the speech circuit.

I hope they don't show that on CNN, I hate seeing people from poor countries being badly treated.

PZZ

[DiscoStu]

Oh joy, the Nu Liemore spin machine has already started pushing out "facts" and "figures" to support El Gordo's up and coming billion euro cash handout to save Euroland and in turn the world.

I can't wait to see the one eyed snot goblin stand up pull down our trousers once more and give us yet another massive rogering before leaving us to drown in his mountains of debt while he flits around the world making millions on the speech circuit.

I'd like to think that in real life I'm fairly laid back and mild-mannered. However, every time I see that utterly f*$cking useless sack of tulip on the TV/hear him on the radio I feel total hatred. Is this normal?

[Ardesco]

Oh joy, the Nu Liemore spin machine has already started pushing out "facts" and "figures" to support El Gordo's up and coming billion euro cash handout to save Euroland and in turn the world.

I can't wait to see the one eyed snot goblin stand up pull down our trousers once more and give us yet another massive rogering before leaving us to drown in his mountains of debt while he flits around the world making millions on the speech circuit.

[DiscoStu]

Don't worry, we've got a fantastic printing press

[AtW]

Here, in a chart, is why Britain can’t afford to be complacent about the plight of Portugal, Ireland, Italy, Greece and Spain. UK banks are exposed to these countries to the tune of 16 per cent of gross domestic product, according to this chart from Stephen Jen of BlueGold Capital Management (the figures themselves are Bank for International Settlement numbers).

[chart not included due to lack of inline images]

By my reckoning that’s just under £250bn of exposure, so if these economies topple, we can’t afford to smirk and be smug about the fact that we avoided joining the euro. We would be engulfed in a nasty, nasty financial crisis of our own.

Look, too, at Switzerland: it faces a 21pc of GDP exposure to these struggling nations. It is an important point ahead of tomorrow’s crunch European Council meeting tomorrow, at which leaders are expected to agree on some sort of bail-out package. At the moment, it looks as if the eurozone members (mainly France and Germany) will provide cash for a “firewall” bail-out designed to prevent these countries from toppling, but there are some whispers that Britain may have to make a contribution. These figures might help explain why. But in that case, one would also expect Switzerland to get involved, no?

More: http://blogs.telegraph.co.uk/finance...-to-the-piigs/

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